This is a question that gets asked a lot particularly following the recent announcement by Ofgem to reduce the energy price cap in April!

The current January to March price cap, for dual fuel households paying by direct debit, fixes gas prices at 7.42p/kwh and electricity at 28.6p/kwh.

From 1 April the price cap for gas will be 6p/kwh and electricity 24p/kwh.

The energy bill for the typical household paying by direct debit will therefore be £1690.

The energy analyst Cornwall Insight is predicting that there will be a further small reduction in the price cap with a slight increase in October.

The fall in energy prices in April has raised expectations that energy suppliers will be offering new cheaper fixed priced deals.

While there are some new deals out for people looking for certainty for a fixed period, think before you switch to a fixed deal. You need to look at what is going to happen to energy prices over the next 12 months. Fixing now could end up costing you more if energy prices drop.

Also bear in mind that there are likely to be early exit fees with fixed deals if you leave early.

Advice from experts like Martin Lewis is that based on current predictions it is cheaper to stay on the Price Cap unless the fixed deal is 18% less than the current January to March Price Cap.

Sources: BBC & Money Saving Expert

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